Zuckerberg’s Crypto Venture Reportedly To Be Sold—Before It Even Launches

The Diem Association, a blockchain-based payment system proposed by Meta, may be close to dissolving despite the cryptocurrency and network not yet existing. 

Ever since its 2019 introduction, Zuckerberg’s crypto venture has been riddled with regulatory concerns. Plus, at the time, crypto and other associated concepts, like NFTs, were not yet as ubiquitous as they are today. 

At first, the currency was called Libra, which CNBC reports was initially meant to be a stablecoin. The initial plan was to create a universal currency, as stablecoin has value linked to a real-world asset such as fiat currency. 

While ambitious, much controversy came from figures like central bankers and politicians, who cited concerns to do with money laundering and privacy infringement. 

The project, if going according to Zuckerberg’s plan, would also throw a spanner in the works of sovereign currencies, like the US dollar. 

Perhaps unsurprisingly, it was never really able to take off, even though the concept was narrowed down to just one US-dollar-backed stablecoin known as Diem USD. 

Statement from Diem Networks US Regarding Congressional Interest in Project — https://t.co/GEIaRZwzr3 pic.twitter.com/Q1tRTzYHXf

— Diem Association (@DiemAssociation) October 20, 2021

According to a report by Bloomberg made Wednesday, the Association is considering selling its assets and various “intellectual property” in order to return its investors some capital, as well as finding “a new home” for its engineers. 

Discussions are, reportedly, still in early stages and have not yet been made public. It is unknown if the company will be able to find buyers, or how the project will be valued when it comes down to making the sales.

Currently, the social media company Meta owns around a third of the venture, according to inside sources who chose to remain anonymous. The rest of it is owned by association members. 

Engadget reports that a representative from the Diem Association had stated the Bloomberg article contained “factual errors,” but no further clarifications were provided. 

[via CNBC and Bloomberg, image via Frederic Legrand - COMEO / Shutterstock.com]